# Probability Of Bankruptcy

## Investor Probability Of Bankruptcy | Select Equity |

Probability Of Bankruptcy | = | Normalized | | Z-Score |

## Probability Of Bankruptcy In A Nutshell

When looking at the probability of bankruptcy, you want to ensure there is a normalized z-score, which means you do not want the data to be too far from the mean, which is what the z-score measures. When looking at this data point, the probability of bankruptcy is a value between 0 and 100, which will tell you the probability of the company having financial distress in the next 2 years. This is very important to consider because you do not want to invest in a company that is potentially going under.

This data point is certainly a complicated one because you can look at it in either a statistical light or a matter of fact light. When you look at a company that is struggling, you can certainly tell by just how things are and by something simple as cash flow if they are going to succeed. Benjamin Graham, the most well known person of value investing searched for these types of distressed companies, but that is a story for another day. As stated here on Macroaxis, probability of bankruptcy should not be confused with the actual chance of a company to file for bankruptcy protection.

## Closer Look at Probability Of Bankruptcy

Taking it a little bit further, besides the obvious reasons of the company being worth nothing, you can use this tool to help you find value stocks. As alluded too, this is when you look for struggling companies, but the idea is that there is limited to no debt and the company has enough cash to survive the down times. Of course there are other factors, but that is why using the probability of bankruptcy in this scenario may prove useful.

This type of information is purely fundamental and should be used as such. When looking at charts, you may see a stocks price begin to tank and take on pressure, this is a prime time to take a look and run the probability of bankruptcy, to know in the near term if the business is going to viable. There are other items you would want to take a look at such as the executive’s comments and the tone of the room. Listen in on the conference calls and determine what everyone is saying, as this will give you the best feel of where the company is headed. Bankruptcy is a last resort due to the many implications it poses, but do know a company can come close to bankruptcy and still prove to be a winner.

## All Fundamental Indicators

## Investor Education Investors Sentiment

The influence of Investor Education investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Investor. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.## Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Investor Education using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.## Build Optimal Portfolios

### Align your risk with return expectations

## Other Tools for Investor Private

Alpha FinderUse alpha and beta coefficients to find investment opportunities after accounting for the risk | Go | |

Portfolio SuggestionGet suggestions outside of your existing asset allocation including your own model portfolios | Go | |

Portfolio RebalancingAnalyze risk-adjusted returns against different time horizons to find asset-allocation targets | Go | |

Bollinger BandsUse Bollinger Bands indicator to analyze target price for a given investing horizon | Go | |

Fundamental AnalysisView fundamental data based on most recent published financial statements | Go | |

Portfolio DiagnosticsUse generated alerts and portfolio events aggregator to diagnose current holdings | Go | |

Idea AnalyzerAnalyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | Go | |

Watchlist OptimizationOptimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm | Go | |

Commodity Channel IndexUse Commodity Channel Index to analyze current equity momentum | Go | |

My Watchlist AnalysisAnalyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | Go | |

Stock ScreenerFind equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | Go | |

Fund ScreenerFind activelly-traded funds from around the world traded on over 30 global exchanges | Go | |

Portfolio ManagerState of the art Portfolio Manager to monitor and improve performance of your invested capital | Go |